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Natural Gas Reaction to EIA Could Keep Pushing Higher


Take a look at the intraday action in commodities.

The following are the latest daily summaries of my ongoing intraday coverage, providing context to interpret price action. Any prices listed are for a contract's current "front month." Their direction tends to correlate with any ETFs listed for each.

Today's Highlight: Natural gas' reaction to Thursday's EIA report was well-timed to leverage a weak pullback. But its follow-through needs at least one more session to confirm.

Dollar Basket
Wednesday's dip to the 79.00 target was recovered Thursday back up to 78.40, Tuesday's low whose break had put into play 79.00. This is only noise, and does not preclude there being a retest of 79.00.

Dec Contract EC; (NYSEARCA:FXE)
Thursday's dip back under 1.3100 undermines the rally's momentum. But the rally should still launch another upleg so long as the pullback avoids a second consecutive lower close Friday under Thursday's ~1.3060 low.

Dec Contract GC; (NYSEARCA:GLD)
Thursday's open gapped down under Wednesday's 1744.00 low, which was retested as resistance through the afternoon, and which was still being tested at the close. Back under 1740.00 should resume the drop's momentum at least to fulfill its 1727.00 target.

Dec Contract SI; (NYSEARCA:SLV)
Gapping down Thursday to 32.75 did not generate enough momentum to break away from 33.00. But a retest of the 32.57 low is likely.

30-year Treasury
Dec Contract US; (NYSEARCA:TLT)
Firming at Thursday's open was reversed to fresh lows at 146-10. Closing under 146-06 would invalidate the potential for a bigger corrective bounce up to 148-00.

Crude Oil
Nov Contract CL; (NYSEARCA:USO)
Gapping down to 91.50 and extending under the 91.20 sell signal to 90.66 still did not launch a new downleg. The morning's consolidation was retraced back into positive territory up to 92.59, still closing flat around 92.00.

Natural Gas
Thursday's reaction to the EIA report surged through 3:50 by nearly a dime, launching a new upleg targeting 3.75, still needing a second consecutive higher close Friday above 3.62 to confirm. Pullbacks must hold 3.50 support.

Editor's note: Rod's analytical techniques are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He applies his techniques live intraday, primarily to S&P futures, at RodDavid .com.
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No positions in stocks mentioned.
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